Coty has agreed to transition the Gucci Beauty license back to Kering for a consideration of approximately $400 million. 

Under the terms of the agreement, Coty will continue to operate the Gucci Beauty brand through at least June 30, 2027, ending the license approximately one year ahead of the original license term.

Coty acquired the Gucci Beauty license in 2016 and has grown the business into a world-class fragrance and beauty operation with market-leading innovation and internationally recognized campaigns. 

Since 2019, Coty has grown Gucci Beauty revenues by over 60%, underpinned by enduring global franchises including Gucci Flora, Bloom, Guilty, and Alchemist Garden.

Markus Strobel, Executive Chairman and Interim CEO of Coty, said: 

“This agreement delivers a favorable outcome to conclude the Gucci Beauty license, enabling Coty to redeploy capital and focus on our priority brands. It recognizes the substantial value created in Gucci Beauty under our stewardship and enhances our financial flexibility.”

The transaction proceeds will be used to support debt reduction, investment in its core prestige fragrance and beauty portfolio, and organizational optimization to reflect the new scope of the business.